Sunday 12 February 2012 04.10 EST
First published on Sunday 12 February 2012 04.10 EST

A Tory MP has accused the chancellor, George Osborne, of "kowtowing" to the Liberal Democrats by reportedly ruling out tax breaks for married couples in the budget.

The recognition of marriage in the tax system has long been a demand of Conservative traditionalists. The coalition agreement provides for proposals to be brought forward, but the junior party's MPs are entitled to abstain in any vote on the issue.

Senior Treasury sources told the Sunday Telegraph the idea would not feature in next month's budget. Stewart Jackson, the Tory MP for Peterborough, who stepped down as a ministerial aide last year, said deferring the introduction of marriage tax allowances represented a failure of leadership by the prime minister, David Cameron.

"I urge George Osborne to reconsider this decision," he said. "There is a great deal of evidence that shows marriage has many economic and other benefits to society.

"Not to introduce this feels like kowtowing to the Liberal Democrats. Our supporters say they want this, and they put us where we are. We need to deliver what they want."

Philip Davies, the Conservative MP for Shipley, told the Telegraph: "We need tax cuts to help the recovery. A transferable allowance for married couples supports the institution of marriage, making it even more laudable.

"The government should be doing more to cut public spending and cut taxes. Half of the cost of marriage tax allowances could be paid for simply by cutting aid to India."

Philip Hollobone, the MP for Kettering, blamed the delay on opposition from senior Lib Dems, saying: "Not for the first time, the Liberal Democrats are blocking a policy that most voters want to see introduced. It only shows how out of touch they are.

"They support things like the alternative vote and the European court of human rights, which most people do not want. Then they block a policy like this that most people support. We are running out of time to introduce this policy – any delay is a disappointment and will be seen as such by our supporters."

Cameron has repeatedly spoken of his support for recognising marriage in the tax system, as has the work and pensions secretary, Iain Duncan Smith.

Before the general election, the Tories proposed a transferable tax allowance that could have been worth £150 a year to married couples and civil partners.

Last year, the deputy prime minister, Nick Clegg, used a keynote speech to question Conservative support for a married couples' tax allowance. "We shouldn't take a particular version of the family institution, such as the 1950s model, and try and preserve it in aspic," he said.

Negotiations between the coalition partners have been intensifying as the budget approaches. Clegg has called for a faster process towards increasing the personal tax allowance to £10,000, and the Treasury chief secretary, Danny Alexander, wants higher rate tax relief on pensions to be scrapped.

Osborne is under pressure from some Tory ministers to axe the 50p top rate of tax – a move opposed by the Lib Dems.